Railway Economics: Introduction

In modern economic, social, and political organization the railways play a very important part, and it is largely as a result of the development of the railway that modern conditions have been evolved. Transport gives to commodities the utility of being in the places where they are required, and thus it is to be classified in economic science as an essential stage in the production of wealth. The demand for passenger transport differs according to the purpose for which it is required. Some persons travel in connexion with their business, and to these transport is a producers' utility. In the provision of any form of transport, several distinct elements can be distinguished. These are: motive power, the vehicle or vessel, the roadway, and the terminals. The success in Britain with which the railways have met the requirements of the home traders has been responsible for an increased demand for such facilities, as traders have learnt to expect and depend upon such services.